Business of… investment tips

Go all out

Stop investing in tiny increments. Go all out. The idea is the brain child of business professors John Ross Knight and Lewis Mandell, and it flies in the face of a popular method of investing called dollar cost averaging. In their unconventional theory, Knight and Mandell contend that investing bit by bit over long stretches of time will not return as big as simply figuring out the lump sum you can afford, and buying in. The pro: simulated strategies using decades of stock market data have compared the two methods, and lump sum beats dollar cost every time. The con: the fear factor.